A balance of payments deficit is defined as the amount by which
a currency must appreciate in order to reach equilibrium.
quantity demanded of a country’s currency exceeds quantity supplied.
a country’s exports exceed its imports.
quantity supplied of a country’s currency exceeds quantity demanded.
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The answer is; A). a currency must appreciate in order to reach equilibrium. A balance of payments deficit means the country imports more goods, services, and capital than they export. It must borrow from other countries to pay for its imports. A balance of payments surplus means the country exports more than it imports. It provides enough capital to pay for all domestic production. The country might even lend outside its borders. ...